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Moving funds back out of Brazil - restrictions?

Discussion in 'Brazil Property' started by ExpatNick, Jul 20, 2008.

  1. ExpatNick

    ExpatNick New Member

    Hello,

    A lot of posts relate to the proper method of sending funds into Brazil from outside in order to be able to re-patriate those funds later. It seems to me quite straightforward that incoming funds must be registered in the sender's/investor's name by the Central Bank of Brazil in order to permit those same funds to be removed when required.

    My question is this: if I send 40kGBP, properly registered etc, when I decide to cash in on my investment, (hopefully) I will have substantially more than my 40k, so how do I repatriate the amount above that 40k? i.e. if I put 40k in, I'm allowed to withdraw only 40k, so what happens to the profit?

    Any (valid!) responses most welcome: thanks in advance.

    ExpatNick.
     
  2. RalphJ

    RalphJ New Member



    You can send the profit. It's possible you may have to show that you've paid tax on it though. Best thing to do is to talk to a good accountant.
     
  3. Raimundo

    Raimundo Guest

    Nick -

    Ralph (MJR) gives good advice, and I'll add that moving $ out of Brazil is one big pain in the a$$! I don't remember the entire procedure and my investment group's #1 guru won't participate here, suffice to say, good luck.

    Did I say GOOD LUCK? :eek:
     
  4. robh

    robh Administrator Staff Member Premium Member

    Hi Nick,

    I just sent out R$95k without any problems. This I couldn't have done without the help of my lawyer and accountant as you need to ensure that the central bank has all the paperwork it needs to allow the transfer out and what tax, if any, is required to be paid.

    Rob.
     
  5. jennifer.fordd

    jennifer.fordd New Member

    Nick,

    You mean repatriate money that you have in a company in Brazil? Or you mean from a purchase of a property you have here?
     
  6. Dotty

    Dotty Banned

    I Have invested in Brasil over the yrs and always reinvested in Brasil and not removed the monies to the UK ,but as the market has been dropping in the uk property market I have decided to invest some money there too.
    Now the info I have been given here in Brasil and the info on this forum are conflicting .The forum says you pay 15% in CGT(fails to mention sqaushed if reinvested within 5 mths).Also I have been told that 15% also need to be paid in tax for removing money out of Brasil.Which would make the taxes pretty hefty!
    Can the people that have LOTS of experience in these matters give some advise to buyers and sellers.Would be of help.
    Happy day
     
  7. davehoskings

    davehoskings New Member

    I have already told what you need to pay which I know from experience. Why don't you see an accountant to be sure??
     
  8. Dotty

    Dotty Banned

    But did you move money out of Brasil within the 5 mths to pay just 15% ?
     
  9. jennifer.fordd

    jennifer.fordd New Member

    Dotty,

    Did you open a brazilian company in order to do your investments and now you want to send the profit back through your brazilian company or you just purchased some plots as natural person and now want to sell them?
     
  10. Dotty

    Dotty Banned

    Jennifer,

    I have been selling personal properties which have seen hugh gains over the yrs and would like to take some money out to reinvest in the UK market whilst the prices are dropping and basically that's it ,but there are a few ?? in relation to the full tax costs involved when doing this and within a time limit and it would be a 1st.
     
  11. Dotty

    Dotty Banned

    Thanks for that info,

    The accountant said that if you sell below 400,000 reais then you are FREE of CGT,but if it is over 400,000 reais then you need to pay 15% CGT +15%+2% if you plan on moving money out of Brasil.
     
  12. Serene

    Serene New Member

    I'm getting rather confused here, are you then saying that 32% taxes in total are to be paid?
    This seems an very high figure.
     
  13. robh

    robh Administrator Staff Member Premium Member

    I have clients who have moved millions out and they never paid anywhere near 32%. They also made sure that their payments were registered properly. I don't see Dotty's posts but I imagine she is mixing up income and capital gains taxes.
     
  14. davehoskings

    davehoskings New Member


    What are the names of the taxes as we all would like to know on this forum how you came to this figure?
     
  15. Dotty

    Dotty Banned

    Well as Rob's an agent and has experience sending money out maybe he will know.I do have not have experience in sending money out of Brasil ,only quoting what the accountant said.
     
  16. davehoskings

    davehoskings New Member

    Most accountants I know tell you exactly what the tax is, but I suppose if your accountant is an imaginary one then he probably doesn't.
     
  17. Dotty

    Dotty Banned

    As you have plenty of experience in buying and selling and sending money overseas then it might be an idea to tell all what one needds to pay and what the taxes are for.I have quoted what I was told by a brasilian accountant , but have not sent money overseas.
    Funny how one who seems to know everything cannot help possible future buyers and sellers and people that may like to invest in the future, yet another sends millions out cannot mention % only it's nowhere near 32%,well what is it then????.I can only think that people will be less interested in purchasing than purchasing which can do people like Robh no favours at all.
     
  18. davehoskings

    davehoskings New Member

    Dotty, you are the one claiming that it is 32% but you won't even step up to the plate to offer any evidence!! I can see why people ignore you a lot.
     
  19. PAUL-brasil

    PAUL-brasil New Member

    Dotty,

    1) If you sell after 5 years of ownership of the property and it is the only property you own in Brazil, and the property sale is under R$440,000 then it is tax free on Capital Gains.

    2) Regardless of when you sell or the amount of sale, if you reinvest within 6 months the full amount then this would also be tax free. If you reinvest with the 6months but under the full total sale price, you may pay some CG tax but can be offset against your new investment.

    3) You can also claim back 4% a year on de- appreciation for every year you have owned the property against any CG.

    Regards
    Paul
     
    Last edited: Aug 15, 2008
  20. Dotty

    Dotty Banned

    Thanks Paul- proper answers.

    Now for the part about moving money out of Brasil(CGT is one thing and moving money out is something else) -would you happen to know the taxe/s involved or percentage as the accountant said another 15% is applied which seems pretty high and I was also told this by an International lawyer in Natal who deals with property transactions.

    Regards and respect

    Dotty



     
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